Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bak corp. is considering purchasing one of two new

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make...

90.2K

Verified Solution

Question

Accounting

image

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Machine A Machine B Original cost $77,100 $181,000 Estimated life 8 years 8 years Salvage value 0 Estimated annual cash inflows $20,400 $39,500 Estimated annual cash outflows $4,820 $9,840 Click here to view PV table. Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Machine A Machine B Net present value Profitability index Which machine should be purchased? Machine A should be purchased

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

describe the parts of an amino acid.

Biology
Q

8. What two circuits are used to generate the IF? (Intermediate Frequency) 62. The synthesizer in a...

Electrical Engineering
Q

You have a sum of $10,000 available for investments. You are offered two options: Deposit the sum...

General Management
Q

Judge best sources of journals, the quality of these journals, and why these journals make the...

General Management
Q

The most important function of the cilia, which are numerous and line the trachea, is...

Biology
Q

Thus the resistivity of copper is 1 7 x 10 8 ohm metre Sample Problem...

Physics
Q

C Note Figure not drawn to scale The circle above has center C and has...

Geometry
Q

Television sets. What does it mean to refer to a 20-in TV set or a...

Basic Math
Q

Evaluate the integral using the following values 6 x dx 2 2 x dx 320...

Calculus
Q

Use the discriminant to determine the number and types of solutions of the quadratic equation.-...

Algebra
Q

Pareto Chart and Cost of Quality Report for a Manufacturing Company The president of Mission...

Accounting
Q

If you invest $14,000 today in a savings account that earns 5% interest, compounded annually,...

Accounting